Material Damage

Should you arrive at work one day to see the results of the fire or earthquake that has destroyed your factory, or the burglary of the server that has lead to all of your data being lost, or the flood that has shorted all of your electronic equipment, will you be able to resume business on the spot and do you have the cash on hand to do so?

A Material Damage policy from Apex can assist. The Apex Material Damage policy has agreed NZbroker wordings with many of New Zealand’s largest insurers and as well as providing a full accidental damage cover further includes such items as:

• Money
• Alternative Accommodation Costs
• Transit

Further extensions can be arranged for Natural Disaster and Terrorism if required.

Premiums are based on a multitude of factors including occupation, age and construction of property, tenancy, housekeeping, fire and burglary protection and claims history.

Deductibles are fairly “standard” across the industry but are adjusted on the above factors as well.

Material Damage insurance will provide cover for your buildings, contents/plant/machinery, tenants improvements, stock and customers goods. As with most insurance policies the idea is to protect the balance sheet of a business and ensure continuity and viability of that business. Should the business have to pay out of its own reserves or facilities then the balance sheet is weakened. Not insuring adequately or at all can potentially lead to the end of the business. No business should be without this cover. Apex can provide cover for all of your insurance needs, whether Property, Liability, Marine, Accident & Health, Trade Credit and beyond. We tailor-make to your requirements dependant on your business needs.

Claims examples:

– In Japan the availability of Natural Disaster insurance is both limited and expensive. Following the earthquake and subsequent tsunami in 2011 whole communities have been lost as businesses have either not had cover or been able to afford it. In New Zealand cover is generally available as has been borne out in Canterbury. Whilst we were not necessarily prepared for the magnitude of the damage the money is there to fix it.

– Following a fire at a meat works there was substantial rebuilding required. To meet requirements of the Health & Safety in Employment Act, the Building Act and the Resource Management Act many changes had to be made to the base construction of the building needing to use a different form of material to re-build. The client had cover on a replacement basis – if the cover had been inadequate this would have led to significant job-loss in the community and final closure of the works due to the increased compliance costs and delays in obtaining consents. The company did not have enough cash reserves to pay for these costs and delays however the insurance policies responded favourably to assist.

To discuss further or for any queries, please contact your Apex Broker or our Technical Manager, Sue Dillion: sue@apexinsurance.co.nz